‘Investment objective’ outlines the level of investment returns that we aim to achieve for this option. Performance is generally measured against a benchmark, such as the Consumer Price Index (CPI) (which is a measure of inflation) and/or a relevant investment market index. It’s important to note that an objective is not a guarantee of returns.

‘Investment risk’ is a general indication of the likelihood that returns will be negative for the investment option, generally expressed over a 20-year period. This 7-point rating scale (from very low to very high) is commonly used across all super funds and is known as a Standard Risk Measure (SRM), although you should note that it is not a complete assessment of all forms of investment risk. The level of investment risk and potential returns can often go hand in hand over the longer term. For example, investments with lower investment risk may produce more stable returns over the short term but generally have the potential for lower returns over the longer term. Returns for investments with higher investment risk may be more likely to rise and fall in the shorter term but generally have the potential for higher returns over the long term.

‘Investment timeframe’ can often be linked with the level of investment risk as an indicator of how long you may need to be invested in the option in order to achieve its objective. Because options with higher investment risk often have greater potential for returns that rise and fall in the shorter time, you may need to be invested in these options for longer to ride out some of this volatility.

‘How this option invests’ gives a breakdown of the asset classes that the option invests in – this is often referred to as the asset allocation or asset mix.

Looking for help or advice about choosing investment options?

If you have questions about choosing investment options for your account, you may want to talk with our Advice team over the phone. There is generally no additional cost to you to use this service for advice relating to your account in the fund.